When it comes to domestic leasehold premises in Handforth, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Handforth with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has under 80 years left, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a landlord in Handforth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Handforth valuers.
Two years ago Omar, started to get near to the 80-year mark with the lease on his basement flat in Handforth. In buying his property twenty years previously, the length of the lease was of no importance. Luckily, it dawned on him that he would soon be paying an escalated premium for a lease extension. Omar extended the lease just under the wire last May. Omar and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he not met the deadline, the sum would have become more costly by at least £1,025.
In 2010 we were contacted by Dr Rhiannon Cox who, having purchased a one bedroom flat in Handforth in November 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Handforth with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease concluded in 2101. Considering the 77 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mrs Katherine Edwards acquired a basement apartment in Handforth in March 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Handforth with 100 year plus lease were valued about £260,200. The average amount of ground rent was £65 collected every twelve months. The lease lapsed on 10 January 2090. Having 66 years left we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus professional charges.